In theory, extended warranties make little sense for anybody, all things being equal. The warranty offerer is going to make money, on average a little from everyone. But in practice, some will cost a lot of money (the "winners" who have repairs in excess of the cost of the warranty) andmore will make them money (the "losers" who never use the warranty). The question is what is the ratio of winners to losers and where do you fall? I just bought my Camry today and I got the 7 year platinum for 1000 dollars with a $50 deductible. Will I have more than $1000 in repairs? Probably not. Will I have the money to pay for it if I do? Likely, but not 100% for sure. But I could afford the 1000 now, so I took the safe road.